Not long ago, two commercial management executives at Cincinnati/Northern Kentucky International Airport (CVG) had an epiphany as they rifled through a collection of old Request for Proposal (RFP) books that were gathering dust in their offices. Surrounded by stacks of artfully designed 300-page tomes, they were struck by the costly exercises the books represented. They also theorized that issuing another traditional RFP would likely countermand the goal of luring quality bidders for open spots in the airport concessions program.
To set the stage, the entire industry was beginning to recover from the COVID-19 pandemic at the time, and the associated turmoil was causing leaders at CVG and elsewhere to reflect—and, frankly, providing time to do so.
“For a number of years, nobody had RFPs out on the street and nobody was willing to commit to capital because of all the uncertainty,” recalls Paul Hegedus, vice president of Commercial Management at CVG. “None of us knew where we would end up, so we started to brainstorm about how to simplify this process.”
 facts&figures
Project: Selecting New Concessionaires Location: Cincinnati/Northern Kentucky Int’l Airport Airport Authority: CVG Airport Authority Strategy: Switch from Request for Proposals process to Request for Qualifications Objectives: Streamline process; strengthen Bid Opening: Aug. 2023 Bid Deadline: Oct. 2023 Bids Received: 10 Winning Bidders: SSP America; Tailwind Hospitality Key Benefits: More bids received; more dialog & collaboration between airport & prospective concessionaires |
His cohort, director of Commercial Management Carlos Ruiz, was similarly questioning the status quo.
Out With the Old
Ruiz and Hegedus identified the thick, hard-bound RFP books as some of the first fat to be trimmed.
“While that information was useful, we questioned did we really need it to be able to award concessions? And what kind of financial commitment were these bidders going through to put the proposals together? And who were we not able to get proposals from because of the expense of going through that whole RFP process?” Hegedus recalls asking. “So that is what started the whole thing.”
The “whole thing” he references is CVG’s openness to change, demonstrated by the use of a Request for Qualifications (RFQ) tender process when appropriate, alongside a traditional RFP. The new approach focuses on assessing the general qualifications of interested entities as opposed to asking them to submit proposals for a specific predetermined scope of services.
As Ruiz explains it, they felt that changing the search process could ultimately strengthen and diversify the airport’s commercial program by attracting more operators.
“Something that COVID proved across many airports is that when you have a couple of prime operators, there is not enough competition to ensure the level of service desired,” he remarks. They also noticed a negative post-pandemic trend: If one company operated all of the concessions in a single concourse, that operator could cherry pick which locations to bring back to service after passenger traffic resumed in order to protect its own bottom line. “By diversifying, we ensure that we are providing a higher customer experience in terms of operators, menus and pricing,” adds Ruiz.
The Commercial Team consequently switched to an RFQ process for its most recent bid package, issued in October 2023; and Ruiz and Hegedus report that their goal has been achieved. In early 2024, CVG awarded contracts for four full-service restaurants and three coffee/snack outlets: two in Concourse A and five in Concourse B. Importantly, the winning bidders are adding the variety and quality Ruiz and Hegedus were hoping to attract.
In With the New
“This time around we knew we had eight locations we wanted to award, and rather than going the traditional route of combining three or four locations in a package and being very prescribed on what we wanted in terms of type of cuisine, brand level, investment and other factors, we decided to leave those details open-ended and focus on the concept,” Ruiz relates.
By switching from strictly RFPs to sometimes adding RFQs, the airport was able to focus on the qualifications of potential operators and their concepts, while leaving the specific financials out of the equation.
“On the initial submittals, we didn’t want to know anything about the rent or capital investment commitment,” Ruiz says, noting the desire to convey that CVG cares first and foremost about each operator and each concept. “We based our decision on the customer experience and the concept itself.”
The new approach worked in the airport’s favor, with a collection of 10 different proposals submitted by the October deadline. Previously, it typically received one or two bidders when offering traditional RFP packages.
By changing its approach, CVG was also able to open the door to new operators that had never participated in an airport bidding process before.
“So far, we’ve secured two operators that never really had an intention to be in an airport, but through this process we were able to get them on board,” Ruiz reports. One of those operators is a local Wendy’s franchise, which opened a stand-alone location at CVG in 2023.
Taste of Place
SSP America was awarded contracts for six restaurant locations. One of its new offerings is a concept that celebrates Cincinnati Bengals football.
Paul Loupakos, senior vice president of Development and Airport Retention at SSP America, lauds the CVG Commercial Team for revamping its selection process for food and beverage providers.
The airport’s Commercial Team worked with concessionaires to refine their original proposals.
“They are knowledgeable professionals who understand how the business has changed since the COVID-19 pandemic,” Loupakos says. “The CVG team understands how essential it is that airports and restaurateurs work collaboratively to ensure we develop restaurants in a ‘win-win-win’ manner which works for the airport, companies like SSP and, ultimately, the passengers.
“We have participated in every competitive bid process imaginable and leave it to the airports to determine the best approach,” he continues. “Ultimately, what we care about is bringing a ‘taste of place’ and authentic experiences to airports because we believe this approach produces a unique experience for travelers which highlights the region’s culinary landscape.”
Healthy Competition, Healthy Menus
Tailwind Hospitality rounds out CVG’s first slate of winning bids using the RFQ process. Its Sambazon counter-service location features acai bowls with berries and other natural fruits. The new health-oriented option opened at the airport in October 2024, after the Commercial Team worked with Tailwind to fine-tune its proposed concept.
Jerry Brienza, vice president of Business Development and Relationship Management for the company, notes that the RFQ follow-up interview provided constructive, open dialogue that enabled Tailwind to showcase its working benefits and gave both parties the opportunity to meet and share perspectives on the overall concession program.
“We prefer the RFQ method for a couple of reasons, one of which is that it affords much more flexibility for the potential operator to give the airport and the customers what they want,” says Brienza, adding that the bidding method offers much more dialogue and collaboration between the airport and potential tenants.
“The airport feels it is hiring a partner, rather than a brand,” he remarks. “And that is the best scenario for everyone.”
